Investment Q&A

Q: If you were looking to diversify outside of North America where would you be looking geographically? Which industries?

Thank you for all your help,

Mike

Q: Dear 5i
I have considerable cash yet in my portfolio and have been doing some buying of late , easing back into the market .
I feel that the worst is likely over but with Trump and his tariffs how can you know for sure . My one concern still is not ,so much what additional tariffs could be added but what will be the near future effects of the current tariffs that are in place . Even with no additional tariffs the ones currently in place once in effect are likely to cause increased inflation , higher prices , higher unemployment and the potential for perhaps a mild recession . That said , is it wise to be buying a whole lot now and be mostly invested or would it be prudent to be maintaining steady buying , regardless of the potential for the negative consequences of the tariffs once they take effect ?
Thanks
Bill C

Q: Could you please provide some commentary on the Moody’s downgrade of US debt? That’s now three ratings agencies for three I believe. Thank you, Michael

Q: Half of my investments are in US dollars , mostly in large cap Tech and Financials . With erosion of USD value I am concerned on the future value of my holdings . I could convert some currency back to CAD through purchasing some dual listed equities ( Norbert's Gambit ) . Is that a wise strategy as opposed to liquidating and holding US cash ?

Q: Seems more and more Trump is trying to muscle in on the decision making of US companies especially Large ones. i.e. telling Apple to reduce footprint in India n threatening Mattel CEO when he suggested its unlikely to manufacture toys in the US.

We are into this only a few months n there is no certainty the power base will change any time soon.

So far seems the best performance continues to be with the larger companies and frankly he has been helpful to some like Boeing but do I need to start making investment decisions more strategically trying to sidestep areas where the Gov’t is likely to have an ability to impact the decision making of my investments?

Areas like Gov’t plan to reduce drug pricing have really drove down Drug stocks. Will the midterm impact of Trump trying to micromanage larger companies create opportunity for mid caps which may sidestep Trumps ire?

Craig



Have we ever had a

Q: A couple of recent guests on BNN Market Call have suggested that the increase in stock prices in the last 6 weeks or so is not warranted and are not supported by economic data, for example, growth in GDP is softening, consumer confidence is weakening, consumer debt is rising, unemployment is increasing, the housing market is very weak, retail spending is only up in the US because of tariff avoiding purchases, etc Although they do not expressly say so, it would seem they are expecting a significant draw down.

I know you have talked about this before, and even not that long ago, but things seem to be changing all the time. What is your overall current outlook for stocks? For certain sectors? And specifically, what about Gold and gold producers - it seems to me the recent run up was a reaction to all the uncertainty; but would gold continue to increase if those guests’ views prevail and there is a draw down now due to a downturn? Many thanks for your excellent service

Q: Everyone, since January 1st I was down 23 % then today I have rebounded to even for the year. Lots of noise but having the best of the best means just waiting for the noise to end. The noise always ends! Clayton

Q: Hi,
Just looking for your take on the Moody's downgrade and what we can expect as a market reaction. Still time to be 'buying the dip' so to speak, or does this add a different level of caution? What can we expect to see from US bonds, dollar and the overall sentiment towards it being the world's reserve currency? Lots of questions, feel fee to deduct extra credits! Always great to hear your thoughts - thank you!

Q: Good Afternoon Team 5i,

Are you watching the US30Y? I’ve heard that the Trump administration blinked on tariffs initially when it hit 5%, (and the bond market is the more important market to watch this presidency.) Thus, if the US30Y gets up to 5% again this is something to keep an eye on and watch how the market reacts.

Do you feel this narrative potentially holds some truth? If so, would you please explain why the administration would want to keep the US30Y below 5% please?

Thank you.

Q: Given that the US$ has fallen lately and Trump would like it to fall further in value against other currencies, would you consider it wise to take some US$ profits off the table?

Thank you,
Mike

Q: Everyone, three months have passed since I asked this same question, so what are the three issues that you are worrying about today? Clayton

Q: Hi there, often times the 4% rule is used as a foundation for retirement planning. I believe the original study used US equities and US bonds as the funds to develop the 4% withdrawal rule. Obviously no one has a crystal ball, but what would be your opinion on using as international equity ETF with the 4% rule rather than a US fund such as VFV? If you were make an educated guess, do you believe using funds such as XEQT/VEXT and VAB/XBB instead of US funds would yield similar results as the 4% study over the longterm going forward?

Q: Can you please list your 5 highest conviction large cap and med cap stocks for a 5+ year hold? All US holdings please.

Also, is it fair to say the market has fully rebounded? Or is the worse still to come? I understand it’s impossible to predict, but your thoughts are much appreciated.

Thank you for everything

Q: Folks with all the talk about the money system reset , tarif war, extreme national debt in North Amercia. threats to canadian economy, and gold becoming a tier 1 asset; how would suggest a DIY investor protect their assets going forward?

Q: I noticed that in one of your replies you said that most 5i staff have been buying during this downturn. I have bought through other downturns. But, Trump has me spooked. You never know what he might do. You feel that this time it may be different. If you feel free to share it, I would be interested to know what gives you this confidence, what your buying strategy is and finally, wha stocks do you see as particularly interesting at this time
Thanks

Q: I am a 64 year old IT professional, planning to retire next year and live off investment income. What do you think about my current sector allocation: Energy 7.00%, Health 7.00%, Finance 22.50%, Industrials 10.00%, Tech 22.50%, Telco 4.00%, Utility 5.00%, Materials 5.50%, Cons.Def 7.50%, Cons.Cycl. 8.00%, Real Estate 1.00%? I have moderate risk tolerance, the portfolio size is over 5mln, most of it is US and Canadian ETFs, and the low real estate allocation is due to the fact that I own some investment real estate. No crypto, gold, or bonds - I don't want any. I have paid out house, no liabilities, and no dependents. I am wondering if my sector allocation is too aggressive..? If yes, what are your suggestions for the perfect allocation specific for my case? Thanks!

Q: Considering present worldwide market uncertainties ,tariffs, volatility : would you agree with my observation that canadian REIT ETFs actually seem to be at a quite low price + less risky for a dividend investor ? If not ,would you suggest another category of investment ?

Q: Hello, I am considered by 5i's report to be an Alpha Balanced Investor. I am 61 and planning to pull back to consult part time. I have an investment portfolio managed by a broker and have set aside $115K in non-registered funds and $11K in registered funds . Can you please recommend the ETFS and stocks that you would recommend for a. non-registered and b. registered $? Please feel free to take two questions from my balance if appropriate. Also, I am to run this thru dollar cost averaging, what would you recommend in terms of % and frequency to invest the full amount? Thx

Q: Shouldn't investors be proceeding cautiously given the S&P P/E is close to 28 and a couple of red flags were announced this morning (jobless claims above expectations; McDonalds largest US sales decline since 2020)? Or am I being too much of a Nervous Nellie?

Q: A dark 2025/6 scenario would be mild recession in Canada, more serious recession in the U.S., both deepened at some point by a U.S. dollar crisis due to massive deficits and chaotic Trump. How should a TFSA be positioned to weather this? Dividend stocks versus bonds? How much of portfolio in gold stocks? How big a cash allocation? What else? Please deduct points as needed for this speculative question.